Toyota class-action suit worth up to $1.6 billion on the way

Toyota had to recall millions of vehicles with breaking problems in 2010, and a class action lawsuit worth up to $1.6 billion will be decided next month.

By
Richard Read, Guest blogger /
May 19, 2013

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Itsuo Inouye/AP/File

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A Toyota Motor Corp.,'s model is on display at the automaker's Tokyo head office in Tokyo, Wednesday, May 8, 2013.The automaker is heading for a huge class-action lawsuit stemming from widespread breaking problems in 2010

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In 2010, Toyotarecalled millions of vehicles for "unintended acceleration" issues, which generated lots of negative press for the automaker and put the brakes on Toyota sales.

Though the recall has fallen out of the headlines, it's still the subject of a huge class action lawsuit working its way through federal court. According to a report in Detroit News, that case could be settled within the next month, and up to $1.6 billion hangs in the balance.

Toyota has been reluctant to accept blame in the matter and maintains that its electronics systems were never at fault. Earlier this year, however, the company settled out of court on a wrongful death case related to sudden acceleration. And now, Toyota is hoping for a repeat performance in one of the largest class action lawsuits in automotive history.

THE LOOMING SETTLEMENT

One month from today, U.S. District Judge James Selna will determine whether a $1.63 billion settlement in that class action case is fair to plaintiffs. If he rules in Toyota's favor, much of that cash will be distributed to current and previous Toyota, Lexus, and Scion owners, reimbursing them for the loss in resale value their vehicles suffered following the recall.

A study of defensive driving and proper use of existing safety systems ($800,000)

If you've owned a Toyota, Lexus, or Scion vehicle, you could be one of 9,000,000 people entitled to cash payments ranging from $37.50 to $125. To learn more, visit ToyotaSettlement.com, or jump directly to the informative PDF.